Consumers to resist electricity tariff increases after court ruling

Concerns rise over financial burden as municipality faces court-ordered tariff review

- THAMI MAGUBANE

ELECTRICITY consumers in Msunduzi have warned they will resist any increase in electricity tariffs after the city was ordered by the Gauteng High Court to resubmit its application along with a cost of supply study justifying the proposed tariff hikes. The cost of supply refers to the study detailing how the municipality arrived at the tariffs.

The judgment, handed down by the Gauteng High Court recently and striking down the tariff for the 2024-2025 financial year, has drawn mixed responses. The order has raised concerns that it might lead to the tariffs being adjusted upwards.

Last year, the municipality implemented a 13.32% increase from July 1, 2024, after Nersa (National Energy Regulator of SA) rejected its proposed 15.5% hike.

The judgment follows an application brought by the Pietermaritzburg and Midlands Chamber of Business against Nersa and the Msunduzi Municipality. The court documents show that there were two other applicants challenging Nersa and two other Gauteng municipalities over the same issue.

The court ruled that Nersa’s decision to approve electricity tariffs for the Msunduzi municipality and the other Gauteng municipalities named in the court action is declared unlawful and set aside.